mifid ii inquiries?ndrew: at the highest levels in the united states, banks and brokerage firms, they have their in-house lawyers working on this , not around the clock but extensive working on it. $20 billion worth of compliance caused already and it is just getting implemented. this will be a boom for the lawyers who do the transaction site as opposed to the litigation side and we are just getting started. mark: is it too early to talk about mifid iii? andrew: the first version started in november of 2007 and the great recession hit, the last 10 years they have amended the rules. it may be too early to talk about the third part but it is coming. vonnie: i think most firms would say let's hope not for a viral. -- for a while. thanks to andrew stoltmann joining us from chicago. here is courtney donohoe with the first word news. >> the elite republican guard in iran has declared an end to antigovernment protests, they were quoted by the state-run news agency as saying the protest is over where 20 people w

[laughter] francine: the idea of mifid ii was to avoid mifid iii. we will wait on the implementation reports by the end of this year. then, i think we can make a serious valuation, but at the moment, nobody is thinking of mifid iii. francine: what will be different one year from now? are there two or three priorities absolutely want to get right? >> honestly, i don't see huge changes. i have some concerns, especially smaller banks. in the u.k., banks give financial advice, but in the rest of europe, it is allowed. i bet smaller banks will leave this kind of market, but i don't see major changes. i think with mifid ii we have strengthened financial markets. we've stabilized them and aerefore, they can create benefit for everybody who has a good approach and a good axis point for the financial product. in one year, i think we will see this is really functioning. francine: trading volume, i think in the first 15 minutes of trade was about 5% below the 30 day average at the start of trade. what does that tell us about the markets and how they are dealin

guy: too early to talk about mifid iii?ummit in brussels have mentioned it but it's been floated. guy: they give or join us. ii go ton mifid tliv. our expert editors are on board with that. in the interest of full disclosure, bloomberg lp competes with a number of services compliant with rules. up next, we will look at some stocks. british sales are better than expected in christmastime. what does that mean for the british consumer? that's next. this is bloomberg. ♪ ♪ five minutes ago until the start of european trading. let's look at some the stocks we will be paying attention to. a u.k. retailers posting better than anticipated numbers. this is one of the real bellwethers for christmas. i would guess don't look that good relative to where we could have been, but relative to expectations, not too bad. let's talk a little bit of what's happening with ryanair. the numbers look fairly good. it's had this whole issue with cancellations. staffing issues have been a big feature. numbers aree the not reflecting that this morning.

we go to mifid now. shakeup of european regulation in a decade is finally here, mifid ii takes effect today. asset managers spent years preparing. are they ready? joining us is a senior policy analyst. well.with us as tell us about what is going on behind the scenes. how will the rules be enforced from today? >> mifid ii is one of the largest pieces of regulation passed. it has taken seven years to get this far. in my view, i don't think many companies, perhaps the larger companies in europe are likely to be 100% mifid ii compliant today. nine of the 28 eu countries have not yet integrated mifid ii into their own local law. today, you cannot legally apply to those countries. yesterday, polish authorities takemifid ii will not effect in poland today, because they have to finalize local measures. manus: we had a chat about this yesterday, which is companies that say they are doing their best, they are going to be given d of time to get their house in order. is this a turning point for markets? this is abou

mifid ii will not yet be a global standard.any questions remain on whether other regions will follow suit >> they were counting on as investors would see this transparency, this new amount of information, they would push for it globally. i think we'll start to see in the u.s. that some of the large state pension funds are looking and lobbying the s.e.c. to say what we're getting from the european asset managers is actually really beneficial >> europe is at a disadvantage of course transparency is a positive thing, but the playing field has not been leveled you can see if you look at the outlook for u.s. banks over european banks, the u.s. banking sector is more positive. >> the spinning plates between the u.s. and europe are difficult to manage between the two regulatory bodies. we have not seen mifid ii come into practical application until january 3rd. it's difficult to say how it will go practically moving forward. the deregulation of the u.s. financial system by some is seen as a benefit, by some seen as an advantage. >>> s

it's early to see what the impact of mifid ii has been on liquidity in the past month, because mifided today. but we will closely monitor the impact and see what adjustments are needed >> i wanted to talk about unintended consequences when it comes to research costs. we've seen a bunch of surveys showing the larger asset managers are capable of absorbing the cost of paying for research, some smaller pund fus don't have that capability and have had to pass that on to the customer so the barrier entry for the smaller firms is quite high. it is benefiting the larger asset managers what do you make of that >> i think one of the areas where mifid ii clearly has already had an impacted is indeed in the area of research and execution. i think it's very good that mifid ii requires the unbundling of these two types of activities it gives the possibility to better selected those brokers that are good in execution and making sure you get the best deal as a client and also to develop a research market where you actually pay for your research. what we've seen in the past weeks and months, a lot o

when it rules --the mifid 2 when it comes to the mifid 2 rules on banking.ve said they will become a systematic internalizing -- it sounds jargon he, but it means that the firm is trading with its own capital, and it allows a workaround and it could be an opportunity for some of the banks that is one way the banks could lose out in the research and win out if they become a systematic internalizing. ultimately the aims of the regulation are more transparency, more competitiveness across markets. they aim to do this with the reporting around trades with the research unbundling, and also bringing more trading on two markets. there are questions how with each of those issues it will play out for different firms. go forward a year -- will this be a better mousetrap? alix: is the mousetrap every good? [laughter] steven: i think they went ahead and try to create a better mousetrap without consulting the mice or the homeowners. alix: i like the analogy. large extent, and i've said this before, i think they are fixing a problem that wasn't there. i will say that para

what is the most important part of mifid two 7 the most important part of mifid two? over 7000 pages and it is five times the length of war and peace except a lot less readable. it inta kes peace except a lot less readable. it intakes financial services. pension funds, broker, investment bank or retailer, investor. the amount of data firm has to hold and capture in order to transact. you need enormous volume of data captured by the system and have enormous investment in it, personnel and processes and many has not been tested by the city before. you are saying you are not convinced it will do what it is supposed to do which is supposed to rebuild our confidence as investors? we are in uncharted waters warren buffett legendary said, when the tide goes out you find out who is swimming naked, well, the tide is going out this morning. we know there are number of firms that perhaps have not had that same level of preparation as we have had. some firms may be caught out. this piece of legislation and does not guarantee there will not be a financial crisis. and we have had o

out with the old, in with mifid ii.he fallout, market liquidity trading on europe's biggest exchanges, down about 30% from the 30 have a day average. it may be a one-off as traders test the waters. is joining us. thanks for joining it is it too early to assess the impact of mifid ii on markets? >> i think it probably is. this is something that people operating in your, our colleagues in europe you have been working on for the last couple of years to get ready for . it is a massive piece of legislation affecting european markets. i think we need to see how it goes through, not just over the next few days, but the next few months, and certainly over the next year. i know you were talking about the fact that the european authorities are going to have to look back. in the u.s. perspective, because of the extraterritorial nature of many parts of mifid, we're thing for that the fcc, led by chairman clayton, took steps to make sure that cross-border execution would not be in conflict with u.s. law when it or theo things like a

. ♪ yousef: we are two weeks in to the mifid ii era.chief architects has told bloomberg that the introduction had a smooth start. he spoke with stephen engle at the asia financial forum. >> some of the predictions before january was there would be barriers to trade because people would not have met certain requirements, and looking back on january 3, it was a smooth start. there is no indication that there will be less trading by traders outside the eu into products in the eu. >> are you having to battle a perception issue? >> as a regulator there is always the need to emphasize the objectives and what we are trying to achieve. rules and regulations and fly costs. it is important to see the benefits. in this case, it is about investor protection, ray transparency, and more standardization. >> i was bringing up the moody's story a sickly saying mifid ii -- basically saying mifid ii will be credit negative. how do you weigh the downside risks to these beefed up regulation? iiit is clear that mifid with the greater transparency around cost

have next, mifid ii has landed the biggest regulation change in decades.easing problems, what could like ahead for regulators? what we are learning in the first week of implantation. we will talk about method and general politics. this is bloomberg. ♪ ♪ here's a shot of the emperors palace in tokyo, 3:30 in the afternoon. the nikkei is charging ahead. jim has said this is one of those rallies. you don't want to push too hard on it. you might want to consider pushing against this slender rally in japan, relative to the nuts states of america. 23,714.ei trades markets are moving, records are being made. guy johnson has the latest. jones,,000 on the dow matt miller is back at work today. i assume he's brought 25,000 jackets to work today. we will wait and see, looking forward to that. it's interesting to see what's going on in these markets. the question is, you look at the almanac. it's a question a lot of people are going to be looking at. the numbers are compelling. micex is trading up as oil to use to rise 2%. the oil market continuing to rise. yesterday,

david: coming up, explaining mifid coming up, explaining mifid ii. blog going into effect tomorrow that aims to make european markets more transparent and competitive. this is bloomberg. ♪ new financial blog going into effect tomorrow that aims to make european effect tot aims to make european david: this is bloomberg markets: balance of power. i'm david westin. shery: i'm shery ahn. disney is higher on an upgrade to outperform. talking abouttle mccrory upgrading netflix as well. abigail: a bullish morning mediaing both of these companies. they like this company for lots of different reasons. , theistribution, the ip fox assets. in white we have the stock. for theically sidelined last two years. revenue growth is down. over the last several decades disney just going in the right direction and lots of revenue growth. they really need to figure out how to get revenue growth going in the right direction. big piece of the problem has been espn. they have developed two apps. there's one that's coming out this year. disney streaming or disney specific cont

it's called mifid ii, it impacts equity trading to the cost of analysts research.oining me is financial times reporter phillip stafford. good morning to you. thank you very much for joining me very quickly, we discussed it a bit yesterday, but frame for us the main changes taking place. >> well, it's a very, very wide and sweeping piece of legislation. 1.7 million paragraphs to boil it down. it's going to open up transparency, especially in the off exchange market, fixed income it will demand a lot more transparency in how you set prices for analysts research and what exactly you're paying for there's more reporting on transparency in etf markets. >> in particular in terms of paying for research, firms have to pay a specific hard dollar amount as opposed to in the past where they covered the cost of research out of commissions for trading. when we think about that, the aim was transparency what are some secondary side effects that could be expected >> well, one of the big things is that this is ultimately a huge i.t. project. so there's been an awful lot of upgrade

shery: mifid ii rules take effect, and the u.s. releases the old year's file jobs report. >> wage growth at .3% -- that is just not good enough. shery: it's all straight ahead on "bloomberg best." ♪ hello and welcome. i'm shery ahn. this is "bloomberg best," your weekly review of the most important business news, analysis, and events around the world. on tuesday, eurasia group released its top 10 global risks are 2018. in a "bloomberg surveillance" special, a distinguished panel of guests discussed it in detail. do you tom keene started by asking why the prevailing talent is so gloomy. >> because when the global economy feels the way geopolitics do today, people respond. they see it is a crisis. they know they need to do something. they've got to bail things out, to infrastructure projects, get the banks ready. we had that back in 2008, and everyone knew -- we talked about this -- we all knew it was a crisis and we had to respond. geopolitics are easily as bad today as the economics work in 2008. they might be worse, and yet, there

. ♪ nejra: mifid begins.egulations started out without major glitches, but what bumps could come down the road. we'll be putting that question to steven maijoor, the chairman of the european securities and markets authority, shortly. and mifid around the world. investors as far away as japan are worried that mifid could stunt the bull run. what will be the global implications of the e.u.'s new rules. welcome to "bloomberg markets: rules & returns." i am nejra cehic in london. "rules & returns" is the show where we delve into the regulatory challenges and opportunities for financial markets across the globe. in this first show of theea

how credit negative is mifid ii? how credit negative is mifid ii?nks, will the uk and eu come to a deal favorable for the city of london. plus, trump one year on, the differences the president has made towards differences in the american financial sector and what is next. welcome to "bloomberg markets: rules and retu

is this a flaw inherently with mifid ii? will there always be ways of getting around new rules? >> there's a saying i used to hear at home a lot -- necessity invention.er of somebody wants to go out into the marketplace and buy a significant percentage of a security, if the rest of the marketplace knows, the price of the security could be influenced by the behavior of their competitor. it does serve a role. ii is designed to cap the trades to 8%. there are alternatives i'm reading about being discussed. brokerage firms buying out of their own accounts on behalf of their clients. mark: some might say we are looking at this from a u.s. versus europe thing. the u.s. might be going down the road of less regulation. the eu going down the road of more regulation. if you see a divergence in regulation, what impact does that ultimately have? >> confusion. one of the other concerns is the volume of trading with the new york may drop over the next several weeks. there's not clarity on how the rules are being applied. the other concern, with all the data that's required to be aggregated, p

mifid day one. dollar shakes off the doldrums. fomc minutes will be released at 2:00 p.m. can it through the dollar lifeline? lifeline -- dollar a lifeline? david: welcome to bloomberg daybreak. i'm david westin with alix steel. alix: did you get worries about your -- worried about your pipes freezing? david: totally. it is not just a problem for us getting up at a ridiculous early hour of the morning. it is affecting markets at this point. it is really power prices and demand. look at the tanker trying to get through christ to deliver products. and unbelievable story. twohe markets we are about and half hours to the cash open in the u.s.

. ♪ ♪ nejra: mifid begins.hes, but what bumps could come down the road. we'll be putting that question to steven maijoor, the chairman of the european securities and markets authority, shortly. and mifid around the world. investors as far away as japan are worried that mifid could stunt the bull run. what will be the global implications of the e.u.'s new rules. welcome to "bloomberg markets: rules & returns." i am nejra cehic in london. "rules & returns" is the show where we delve into the regulatory challenges and opportunities for financial markets across the globe.

treating bolling's 25% lower for we will delve deeper into the mifid ii story for you. the euro falling for the first day in six. 120.59 following the strong pmi data. we had comments discussing the end of the qe program. or ecb policymakers picking out. the austrian central bank governors has the close of asset purchases is within sight. the euro strength weighing on european stocks yesterday. today, stocks rising. this chart shows the declining correlation between the euro, the blue line, and the stoxx 600 approaching a career-high. decline in inverse correlation. this is a wonderful chart as well. gold following for the first day in nine since the best run through july 2011. -- $1317 an ounce. we've highlighted that january decline. 3.5% onave risen average in the last 15 years. january is historically the best month for gold. let's talk about next, the big mover on european markets. it was up as much as 10%, now up a mere 6.7%. he lifted its profit forecast following a better-than-expected christmas. this is a clothing retailer. an updated signal for retailers conte

up next, mifid ii and the markets. new legislation came in force this week, but how deeply will it impact? from our interview with steven major or -- maijoor. this is bloomberg. ♪ ♪ matt: welcome back to the european market open. i am matt miller alongside guy johnson. you saw our new headquarters there in london. we need to get the bloomberg business flash with juliette saly. uber's former ceo plans to sell out 29% stake in the company. reaps kalanick stands to about $1.4 billion from the transaction with softbank and a consortium of investors. he has long boasted he has never sold shares in the company he cofounded. apple has said all mac computers by ios devices are affected chip flaws. the company added that recent software updates mitigate one of the vulnerabilities known as meltdown. watch,so said the apple which runs a derivative of the iphone's operating system, is not affected. that is your bloomberg business flash. guy: thank you. my eco-screen up to look at the french data just hitting the tape. cpi coming t

equivalent the american two-year is trading at levels last seen at 2008. >>> sticking with mifid and europe, the european commission is in the process of taking infringement proceedings against 19 member states over mifid ii the 19 countries have lacked implementation of the new rules. nikos chryssochoidis joins us on the show this morning. good morning >> good morning. >> can i ask you how the adoption of mifid ii has been as far as you're concerned and as far as the stock exchange has been concerned >> it's been problematic for the first couple of sessions we're still facing problems, i.t. wise problems, and the reporting has been tough for local brokers. so as far as i know around 10% to 15% of trades as of yesterday and the day before yesterday did not go through so we are still in the process of trying to solve this. >> i have to ask you, is this embarrassing for the greek financial system given that you've had some time to prepare for this >> to be sincere, i think this is a pan-european issue for all broeshgs across tbrokers acrosse continent. it's a new rule that's difficult

mifid 2 — as the new regulations are known — will govern the way financial services are sold and areve said that they already need updating. we're starting to get the first retail results through that tell us how firms fared over christmas. yesterday research firm springboard said that fewer of us hit the high streets over the festive period and this morning, clothing and homeware firm next is the first of the big retailers to publish their figures. it said trading was actually better than expected, with sales up 1.5%. but that increase was from online sales. sales in its high street and out of town stores were down 6%. natalie berg is director of retail insights at planet retail. i think at best we can be cautiously optimistic. some bright spots. may have expected them to be slightly in decline. certainly some good news. 0nline retailing performing very well for next, but the physical sales from stores, falling. i think thatis sales from stores, falling. i think that is a pattern we are going to keep seeing across the sector. increasingly, shoppers go online for clothes. that there'

those were voices we heard on bloomberg on mifid ii. shakeup is causing ripples of concern in japan. they say the new roles have gone through without any glitches so far. but some japanese investors are concerned they will have a negative effect on rising equities. our bloomberg stocks reporter joins us from tokyo. mifid ii is not being applied in places other than europe. how exactly is this affecting japan? why are they worried? >> like you said, it is not being applied to japan, but how that will affect marketing activities by brokerages that want to sell japanese equities to europe and e.u. clients. some of the sales folks are finding it difficult to approach european clients because of the new rules apply to japan, for example. longer want to receive it free research females from japan, just as a precautionary step, because they do not know what will happen in the future. foreigners are big part of japanese equity markets. not specifically the e.u. client base. 1/3they account for roughly of the japanese market. it could be a littl

how credit negative is mifid ii? brexit and banks. will the u.k.o a deal favorable for the city of london? plus, trump one year on, the differences the president has made towards differences in the american financial sector and what is next. welcome to "bloomberg markets: rules and returns". i am nejra cehic in london. "rules and returns", is the show where we delve into the regulatory challenges and opportunities in financial markets around the world.

mifid around the world, investors as far as japan say it could stunt double run.he global implications of the eu's new rules? welcome to "bloomberg markets: rules & returns." i am nejra cehic. this is a show where we we will

but it is through which everything begins >>> coming up on the show, it's less than 24 hours until mifidi regulation comes into force, but is the financial services sector ready we'll have that conversation after the break. >>> welcome to "street signs." i'm joumanna bercetche these are your headlines >>> in with a bang stocks in hong kong close up 2% on the first day of trade in 2018 hitting the highest level in a decade. >>> european automakers trade lower on weak 2017 car registrations in france as drivers turn their back on diesel >>> lufthansa shares fall after the german carrier loses out to iag in its bid to buy niki. >>> and south korea offers talks with the north a day after the north korean leader, kim jong-un says he is open to dialogue with seoul, despite telling the u.s. that the nuclear button is always on his desk >>> all right. so it is 9:30. we should be getting the uk pmi data any time now. actually we did just get it. the uk december manufacturing pmi has come in at 56.3 versus 58.2 the consensus number was 58. so it appears as though it's come in a bit weaker versus e

europe begins the countdown to day of the mifid it's following weeks and months of individual mifid iielated articles, which comes into play tomorrow across the eu and has implications for the u.s it says the gigantic piece of eu legislation more than seven years in the making and containing 1.7 million paragraphs of rules will affect every corner of the financial services system from banks to brokers, stock exchange operators to retail investors. as we discussed earlier, a big piece of financial legislation, having implications for asset managers and banks in the itself this is a good summary of some of those potential consequences. >> has anyone put out timelines for when you may see the consolidation you suggested earlier? >> the consolidation would be a secondary effect if it raises the costs t will affect the smaller players more. i don't think we know how long that will take it comes into play tomorrow, these rules. so we'll see the shake out happen quickly and see how it all plays out. >> my pick is in the "new york times. states pay the price when you buy online there's a brief

should investors be miffed about mifid ii. and as far-reaching as in australia. this is bloomberg. ♪ this is bloomberg. ♪ >> it is 10:29 a.m. in hong kong. i am paul allen with first word headlines. president trump offered conflicting opinions on north korea, saying the pressure of sanctions may be to talks, but then engaging in schoolyard games about the size of their respective nuclear options. he tweeted the following. singapore-based group is denying any involvement in the illicit transfer of fuel to north korea after the south set the world's third egg is independent oil trader unloaded a cargo ship in our toper in breach of sanctions. the company says the shipments had been sold to a little known hong kong based company, which then sold it on. from declinesback on reports that peter thiel is holding a large amount of the cryptocurrency. the wall street journal said that that is spread across several funds, including one that launched in mid-2017 that made bitcoin one of its first investments. the founder started buying b

. ♪ ♪ nejra: mifid begins. out without major glitches, but what bumps could come down the road. we'll be putting that question to steven maijoor, the chairman of the european securities and markets authority, shortly. and mifid around the world. investors as far away as japan are worried that mifid could stunt the bull run. what will be the global implications of the e.u.'s new rules. welcome to "bloomberg markets: rules & returns." i am nejra cehic in london. "rules & returns" is the show where we delve into the regulatory challenges and opportunities for financial markets across the globe.

shery: going forward in 2018, we talked about mifid, deregulation, and taxes.t else should we be keeping an eye on when we are covering the banking sector? betsy: number one is going to be interest rates. not onlyhe fed doing with the short end of the curve, but the long end of the curve? draghi doing, because clearly some of the demand for our long end of the curve is coming from overseas. and to what extent the boj -- boj is doing as well. vonnie: the only two underrates you have our u.s. bank core and northern trust. what are they doing wrong? what the is more about opportunity set is from upside from here. top picks skewed towards institutions that are either big beneficiaries of tax rates without yield curve pressures, or are making significant changes on the consumer banking expense line. my super regional banks, the institutions that are able to invest in tech, and also manage their branch efficiencies as tightly as possible, those are the ones that are going to be in our overweight bucket. vonnie: betsy, thank you. always great to speak with betsy. bitc

2 needsare where mifid us to be.you are an asset danger and i need to have counterparties that are complying and i can drive the volume through, that is good for barclays. i am not sure cutting up the smaller players is healthy for the capital market. is the doj investigation progressing, how do you expect it to and and how much will it help with share price? jes: we continue to have conversations with the department of justice. we want a settlement. we have said for us what has been important is we want to be treated proportionately fairly with how the u.s. banks settled. we hope we get to a point where there is a settlement in both parties can look back and say the penalty paid by our cleese is correspondent with what happened in line with what happened with the u.s. banks. last 10 months i have been given the great opportunity to be ceo and to exercise my role of running barclays. i am not allowed to talk about the investigation. let's hope we come to an end soon that i'm still focused on the running of barclays.

while some other impacts of mifid, including moving more toward liquid trading will be more visible.e more visible in the time ahead. steven, on the dark trading, are you bringing forward the implementation date of the all caps under trading? are you bringing that earlier today and he worry 12? line as we keep to the we have agreed to earlier -- the deadline to start with the double volume cap where currently we are collecting the data on these issues and getting atsma and we have not -- >> no major glitches on the first day of mifid 2. you concerns servicing, as know, stock exchanges have been very vocal about rival platforms, systematic internal eyes are stinging volume from caps.despite themifid 2 they tried to address this by proposing to extend the pricing regime. the thing is, it looks like the eu commission is going to move slowly on this. all you push the eu commission and national regulators to move faster? as you see, what is very important is that we make sure is that we have the right balance in a level playing field regime the so-called si and trading venues. we know the

how credit negative is mifid ii? a deal favorable for the city of london.the differences the president has made towards differences in the american financial sector and what is next. welcome to "bloomberg markets: rules and returns". i am nejra cehic in london. "rules and returns", is the show

the move comes as its customers look for ways to avoid new mifid ii regulations in europe 245 options and futures contracts in oil and natural gas liquids will be removed from the futures exchange in london and added to the exchange in the u.s. that puts trading oversight under the supervision of the cfdc rather hahn european regulators that seems an effective way to get out of mifid ii. get involved in the conversation streetsignseurope@cnbc.com we are also on twitter, streetsignseurope@cnbc >>> the nba is back in london. we will hear from the co-owner of the boston celtics ahead of tonight's game against philadelphia we get his thoughts on private equity ♪ this is what our version of financial planning looks like. tomorrow's important, but, this officially completes his education. spend you life living. find an advisor at northwesternmutual.com. you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't fo

is mifid now a mess? matt: let's look at futures. from where i am sitting it does not look like it will be a good open, a rainy day in frankfurt and down on the futures across the board. futures are positive, but for the most part down and that is understandable after a long march higher in equities. the s&p 500, up six day sin a row. -- six days in a row. is treasury trades, guy, where it gets interesting, looking at 2.559%. so, that yield going above 2.5% and staying there. the question is, how much higher do we go if we are looking at the end of the bull market in treasuries? guy: it is probably 3% winning to be looking at as the line in the sand. the australian market was up five days in a row. the s&p, up six days in a row. the industrials are being sold overnight. europe had a good day yesterday, that is the bond market interesting. the japanese yen trading up by 0.6%, but it is the story surrounding the boj that is interesting. the yen is trading higher. the bloomberg dollar index down by 0.1%. let's show you what is happening

. ♪ nejra: mifid begins, new regulations start without major glitches, but what can be coming down thetion -- mifid around the world, investors as far as japan say it could stunt double run. what would be the global implications of the eu's new rules? welcome to "bloomberg markets: rules & returns." i am nejra cehic. we

. ♪ ♪ nejra: mifid begins, new regulations start without major glitches, but what can be coming downll put that question -- mifid around the world, investors as far as japan say it could stunt double run. what would be the global implications of the eu's new rules? come to "bloomberg markets: rules & returns." i am nejra cehic.

mifid wilk come into force -- ii will come into force tomorrow..tors money is banks and asset managers spent twond tube elements -- dollars billion. in terms of the biggest regulatory change in 10 years, it is a complex issue. is everybody ready, or where do we think things, if they will go wrong, where might that be? >> the answer is no. not everybody is going to be ready. some people are not aware how much they are covered by the new rules. the regulator in the recent weeks backed off and said there allowe six months to firms to get across the line. as long as you show you are making an effort, you will be ok. if you have not made an effort, the regulator will not be happy with you. manager and iet give you $100 million, and you decide you don't have the expertise in emerging markets, million, to give $10 that asset manager in hong kong is covered by mifid. a lot of overseas managers in asia, we don't think they are fully aware they are covered by these rules. they may get caught up in a way did not expect. is there a sense regulators need to co

the man behind miss it -- mifid.bloomberg. ♪ >> some of the impacts of mifid ii were already available in the past weeks and the past months, regarding the unbundling of research and execution. while some other impacts of mifid, including moving towards liquid trading, will be more visible, we expect to be more visible in the time ahead. haidi: on the dark tradinghaidi: are youn -- bringing forward the implementation date of the cap's to january 12? >> no, we keep to the line. the deadline to start with the double volume cap. we are currently collecting the data on these issues. and we haveng that not changed our plans regarding the timeline in that respect. major glitches on the first day of mifid ii, as we have established it as we know, stock exchanges have been vocal about rival platforms taking volume from them despite the method to caps on dark trading. they have tried to address this by basically proposing to extend the pricing regime. the thing is, it looks like the e.u. commission is going to move slowly on

how credit negative is mifid ii? a deal favorable for the city of london.e differences the president has made towards differences in the american financial sector and what is next. welcome to "bloomberg markets: rules and returns". i am nejra cehic in london.

aws on miss it -- mifid mifid we managed the change very well. rely very much on our research.er time, change a little bit in terms of pay and the reputation of buy side research as this will increase rather also in the area and europe and the consumption of research will be more focused or a little bit reduced. you certainly have to pay for it. you look very closely. tom: this is absolutely critical then. you are a huge player in this with a lot of power. is this going to mean fewer in the research firms complete opposite of the goal, which is less transparency and less information to the buy side? indeed, i would expect that we get more consolidation in terms of research providers. economists look for of scale and we have seen for some smaller research firms, are nowave left and trying to manage money going to the buy side, etc. so there is some movement. matt: i wonder about a different regulatory proposal that senior fund ministers -- managers have to be located where the funds are domicile. does that make sense to you? a very big is not issue for us because we have a very

shery: mifid ii rules take effect, and the u.s. releases the old

mifid ii rules go into effect, and the u.s. releases the old year's file jobs report.